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US-China Relations

Chinese’ Companies Default Problems

On December 6, Epoch Times’ YouTube Channel “Crossroads of the World”  had a discussion on companies in China that are defaulting on their debt.

Host Tang Hao listed the following recent default cases in China:

  • October 24, Xiwang Group Company Limited, China’s largest corn oil producer, was unable to pay back its 1 billion yuan (US $140 million) short-term bond.
  • November 11, Guirenniao, a Chinese sneaker company could not pay its 500 million yuan bond.
  • November 19, Dongxu Optoelectronic Technology Co Ltd, China’s largest LCD glass substrate manufacturer, couldn’t pay its 2 billion yuan debt.
  • November 27, Xiwang Group couldn’t pay another debt of 861 million yuan.
  • December 2, The Beijing University Founder Group, the largest college-owned enterprise in China, defaulted on a 2 billion short-term bond. The company had 370 billion yuan in assets.
  • December 3, Guirenniao defaulted again, on a 647 million yuan debt.

Tang Hao gave three reasons for these defaults: One, many companies followed the government to take on excessive debts to seek high-expansion. Two, the trade war with the U.S. hurt China’s economy. Three, the owners of the companies, who have low moral values, do not feel any social obligation to pay back their company’s loans. They may just spend the money lavishly or put the borrowed money into their own pockets.

As a result, companies’ credit problems have also dragged down the banks:

  • In May, Baoshang Bank Co., Ltd. had a severe credit risk and the People’s Bank of China and the Banking Regulatory Commission took it over.
  • In July, the Bank of Jinzhou had a high cash risk and the Industrial and Commercial Bank of China had to infuse it with money.
  • In August, Hengfeng Bank in Shandong Province had a cash crisis and the Shandong government took it over.
  • In October, Yichuan Rural Commercial Bank in Luoyang City, Henan Province suffered a bank run that lasted three days.
  • In November, Yingkou Coastal Bank in Liaoning Province suffered a bank run.
  • In November, the government took over Harbin Bank in Heilongjiang Province.

Source: YouTube, December 6, 2019

China Decided to “Teach the United States a Hard Lesson.”

People’s Daily reported on December 2 that the Chinese Ministry of Foreign Affairs announced a ban on U.S. military vessels and aircraft. They are now prohibited from using Hong Kong for logistics. At the same time, China also announced sanctions on a number of U.S. NGOs (Non-Governmental Organizations) that China identified as “playing an evil role in the Hong Kong riots.” The People’s Daily commentary suggested that it’s about time to “teach the United States a hard lesson.”

Primary Taiwanese news agency Central News Agency (CNA) reported on December 3, along with several Taiwanese media companies, that the Mainland ban should be considered an opportunity for Taiwan to extend an invitation to the U.S. Navy to dock at a Taiwanese port for logistical supplies. The U.S. never truly had a dependency on Hong Kong, and Taiwan can offer much better reliability for supplies.

Global Times published a commentary on December 6 that maintained the region is facing a historic change of military balance. China now has a far superior military power over the Taiwan Strait. The commentary explained that, if the U.S. and Taiwan get closer, Mainland aircraft can attempt flying over the Taiwanese presidential palace and the Mainland navy also has the option of entering the Taiwanese coastal line. The cost for the U.S. to intervene in a Taiwan Strait conflict is rapidly growing. So if Taiwan wants more collusion with the U.S., just go ahead.

(1) People’s Daily, December 2, 2019
(2) CNA, December 3, 2019
(3) Global Times, December 6, 2019

Global Times: Washington Cannot Cut the Ties between Hong Kong and the World

Global Times recently published a commentary as part of the wave of Chinese media attacking the new U.S. law, The Hong Kong Human Rights and Democracy Act, that President Trump just signed. Global Times asserted that the U.S politicians are simply turning Hong Kong into a jump point to deter the rise of Mainland China. The commentary indicated that China has now become so powerful that Hong Kong can no longer be used as a “strategic Western chess piece.” The U.S. move may be able to create a little bit of trouble for China right now, but in doing so, it may destroy the United States’ interest in Hong Kong. The commentary described the “One Country Two Systems” arrangement as a reasonable setup that is good for both Mainland China and Hong Kong. It is a system which was working well until the U.S. came up with this new law that threatens to take away Hong Kong’s favorable trade partner status. The author claimed that Hong Kong can continue to sustain its prosperity with or without the U.S. The commentary concluded that Hong Kong’s global status was not something that the United States granted; therefore, the U.S. cannot simply cut the ties that Hong Kong has established with the world, .

Source: Global Times, November 30, 2019

Why Are PLA Special Forces in Hong Kong?

Hong Kong’s Oriental Daily reported on November 16, 2019, that the special forces of the People’s Liberation Army (PLA) have shown up in Hong Kong. Among the PLA soldiers stationed in Hong Kong who went to the street to clean up road blocks, quite a few wore shirts with Chinese characters of “Special Warfare Eighth Company (特战八连)” and “Snow Maple Battalion (雪枫特战营)” emblazoned on them.

The PLA West War Region established the “Snow Maple” unit in 2000, as the PLA’s first anti-terrorist special warfare force. The unit is called the “Sirius Commando,” with the “Special Warfare Eighth Company” as its core. {1}

People have been questioning whether the PLA special forces are connected to the over 200 “unexplained deaths” of Hong Kong youths since Hong Kong started the Anti-Extradition movement in June. {2}

On November 13th, Hong Kong Security Secretary Li Jiachao stated that, based on preliminary statistics, from June to September this year, there were 256 suicide cases in Hong Kong, an increase of 34 cases from the same period of last year; and 2,537 cases of dead bodies, an increase of 311 cases over the same period of last year. {3}

A Chinese person using the name “Yin Hui” (which might be a fake name to hide his identity) said that he was a police Captain in a city in China and escaped out from China about half year ago. After studying the pictures of the “floating corpses of protesters” in Hong Kong, he concluded that the PLA special forces used a special killing technique called Dim Mak. {4}

Mr. Yin came to an online commentary “Lu & Jiang Review” program as a special guest multiple times to talk about Hong Kong. {5} {6} {7} {8}

On November 15, Mr. Yin revealed, in on an online program, that he received information that the CCP transported 30 high-tech sniper rifles and 5,000 shock exposure bombs {to HK}. He believed those sniper rifles must be for the PLA special forces to use since HK police do not know how to use them.

On November 19, Mr. Yin and hosts Mr. Lu and Mr. Jiang discussed multiple reasons why the CCP sent those PLA special forces to Hong Kong:

1. To crack down on the democracy movement in Hong Kong.

2. To deal with any emerging private or hidden forces of rebellion.

3. To deal with any potential foreign (e.g., CIA) agents.

4. To monitor and control HK Government officers and police. Another PLA special force, the “Snow Leopard,” is stationed in Guangzhou, very close to Hong Kong. The CCP leaders may suspect a potential relationship exists between the “Snow Leopard” commanders and the HK officers and police. Therefore, they sent the “Snow Maple” unit, which has had experience in cracking down on riots in Xinjiang and destroying East Turkestan, so their soldiers were used to killing and would have less sympathy for the Hong Kong people.

They also concluded that the PLA special forces showing up on the streets had the purpose of warning the Western special forces and the Hong Kong government, and to threaten the Hong Kong protesters. {8}

1. Oriental Daily, November 16, 2019
2. Epoch Times, November 17, 2019
3. Hong Kong 01, November 13, 2019社會新聞/397687/本港今年6月至9月256宗自殺-2537宗屍體發現等個案
4. Chinascope, November 14, 2019

CCP Special Forces Used Dim Mak Technique to Kill Hong Kong Protesters

5. YouTube, November 7, 2019

6. YouTube, November 8, 2019

7. YouTube, November 15, 2019

8. YouTube, November 19, 2019

Growth Rate of Chinese Students to U.S. Reached Ten-Year Low

Well-known Chinese news site Sina recently reported that, according to the latest report that the American Institute of International Education (IIE) released, for the 2018-2019 academic year, China remains the largest source of U.S. foreign students. However, the growth rate of Chinese students is slowing and has reached the lowest point in a decade. It appears this is a direct result of problems such as visa issuance. China has been the largest foreign student source for the U.S. for ten years now. For the 2018-2019 year, China has 370,000 students in the States. This represents one-third of the total number of foreign students in the U.S. Geng Shuang, the spokesperson for the Chinese Ministry of Foreign Affairs, commented on the IIE report at a press conference. He thought that the reduction in the growth rate apparently showed that current U.S. policies impacted the image and the reputation of the United States and that they also blocked healthy exchanges between the U.S. and the outside world. He thought this, in fact, might hurt U.S. interests. Although President Trump has expressed his position of welcoming Chinese student multiple times, yet it would be better if this positive attitude displayed itself in reality. Geng said that, hopefully, next year’s number will look better.

Source: Sina, November 22, 2019

Columbia University’s Cancellation of Human Rights Forum Draws Criticism

Amnesty International, an international human rights organization, was scheduled to hold a seminar at Columbia University on Thursday, November 14. The topics included the human rights situation in China, including Xinjiang, Tibet, Hong Kong, and Beijing’s infiltration overseas. The day before the meeting, Columbia University told the organizers that the seminar had to be cancelled. According to Radio Free Asias interview of Teng Biao, a human rights activist and lawyer from China who was supposed to speak at the seminar, the explanation that the University gave was that a Chinese student group said that it would go to the seminar to hold a protest. As the school could not guarantee the safety of the participants, it decided to cancel the event.

A commentary published on the overseas Chinese website Boxun compared the incident with an event in 2017 at the University of California-San Diego, in which the Dalai Lama had been invited to give a commencement speech. Despite the opposition from the campus Chinese students’ organization, the Chinese Students and Scholars Association (CSSA), UCSD stood behind its decision to host the Dalai Lama.

The commentary questioned whether the so-called Chinese student organization mentioned by Columbia University is the Chinese Students and Scholars Association (CSSA), a network of organizations that the Chinese Communist Party’s United Front Work Department oversees. The commentary questioned whether the CSSA has registered as a foreign agent with the U.S. Department of Justice pursuant to The Foreign Agents Registration Act (FARA). The commentary also questioned whether Columbia University has upheld freedom of expression and academic freedom.

Mr. Teng Biao pointed to the fact that, in recent years, there have been multiple incidents in which the Chinese Communist Party used Chinese students to interfere with freedom of speech and academic freedom on a U.S. campus and that these incidents deserve high attention from American society. It is understood that Columbia is the only Ivy League university in the United States that {still} hosts a Confucius Institute.

Source: Radio Free Asia, November 15, 2019.
Boxun, November 16, 2019